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Youth Contract - Overview 6 February 2012 Iain Walsh, Deputy Director Labour Market Interventions Strategy Division

Youth Contract - Overview 6 February 2012 Iain Walsh, Deputy Director Labour Market Interventions Strategy Division. Young people not in work – Why we need a Youth Contract. Elements of the Youth Contract. More intensive Jobcentre Plus adviser support. Wage Incentives. Youth Contract.

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Youth Contract - Overview 6 February 2012 Iain Walsh, Deputy Director Labour Market Interventions Strategy Division

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  1. Youth Contract - Overview6 February 2012Iain Walsh, Deputy DirectorLabour Market Interventions Strategy Division

  2. Young people not in work – Why we need a Youth Contract

  3. Elements of the Youth Contract More intensive Jobcentre Plus adviser support Wage Incentives Youth Contract Additional Work Experience / sector based work academy places Additional support for 16 / 17 year olds New Apprenticeships Additional Mandatory Work Activity places

  4. Youth Contract • New support builds extensively on the support already available allowing for swift implementation • Majority of Youth Contract support will be available from April 2012 • New elements of support include: • Wage Incentives - Available to employers recruiting young people through the Work Programme • Additional support for 16 and 17 year olds – flexible programme of support delivered on a payment by results basis • These measures are being designed in partnership with key stakeholders including a broad range of employers and providers to ensure that they are effective • Ministers are meeting voluntary sector employers on the 8th of February

  5. Wage Incentives • Detail • 160,000 wage incentives worth up to £2,275 available over 3 years • Available to employers from the private, voluntary and community sectors who recruit 18 – 24 year olds from the Work Programme • Ongoing engagement with a range of employers, representative bodies and stakeholders to inform design of scheme • Aim to ensure scheme is simple, efficient and easy to engage with to attract a wide range of employers, including smaller organisations and voluntary sector employers • Purpose • Encourage employers to fill existing vacancies with inexperienced young people • Help reduce long term impacts of the recession on young people

  6. Additional support for 16-17 year olds • Programme of support for 16-17 year olds designed by DWP and DfE in partnership with a range of key stakeholders • Aims to provide most vulnerable 16-17 year olds NEET with additional support to help them back into either: • full time education or training; • an apprenticeship; or • a full-time job with accredited training • Flexible programme of support delivered on a payment by results basis • £150m over the next 3 years • Design process ongoing; we expect to announce more information shortly

  7. Other elements of Youth Contract • Apprenticeships • 20,000 additional incentive payments to support the Government’s Apprenticeship strategy taking the total to 40,000. • For small and medium sized enterprises with up to 50 employees taking on their first 16-24 year old apprentice • Each incentive payment worth £1500 • Work Experience and sector-based work academies • An extra 250,000 places available over the next three years bringing the number of work experience places to at least 100,000 places per year

  8. Impact on Youth Unemployment • The Youth Contract will build on the wide range of support already available to claimants through Jobcentre Plus • This will ensure that every unemployed young person in need of support will have access to it • The Youth Contract will help target support more effectively and this, alongside the existing support, will help young people find real jobs • The focus will be on equipping young people with the skills and experience they need to succeed in the longer term

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